CCP greenlights merger between DWP Engineering, Digital World Pakistan

September 13, 2024 (MLN): The Competition Commission of Pakistan (CCP) has granted approval for the merger between DWP Engineering Industries (Private) Limited and Digital World Pakistan (Private) Limited, as per the Scheme of Arrangement.

The CCP conducted a Phase I competition assessment, reviewing the business activities of both entities. DWP Engineering Industries is a private limited company incorporated in Pakistan, specializing in the manufacturing and sale of various interrelated consumer electronics and home appliances.

Similarly, Digital World Pakistan is a private limited company engaged in the same line of business.

The CCP’s assessment identified the relevant product market as "Consumer Electronics & Home Appliances," with the geographic market being Pakistan.

Upon completion of the merger, DWP will be dissolved by Order of the High Court, and Digital World’s market share is expected to increase slightly within the relevant market.

The CCP has determined that the proposed transaction will not result in Digital World attaining a dominant position, as defined under Section 2(1)(e) of the Competition Act.

As consumer demand for electronics and appliances continues to grow, this consolidation is expected to enhance operational efficiencies and expand product offerings.

Post-transaction, Digital World’s strengthened position is anticipated to foster increased competition, spurring innovation and potentially leading to improved pricing and product quality for consumers.

Furthermore, the merger aligns with Pakistan's broader economic goals by attracting investment in the manufacturing sector, boosting local production, and supporting job creation, thus contributing to economic growth in a key industry.

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